Equity Capital Markets
Asia (ex-Japan) ECM volume stands at $6.1bn via 18 deals this week (two IPOs, 13 follow-ons, and three convertibles), compared to the $2.0bn via 25 deals completed in the previous week.
On March 6, Chinese issuer Blackcow Food completed a $2.4bn follow-on via sole bookrunner China Securities at Shenzhen Stock Exchange, this is the largest Asia (ex-Japan) ECM transaction for the week.
Food & Beverage ECM volume has reached $3.5bn via 12 deals this YTD, compared to $686m raised via eight deals in 2017 YTD. Follow-on accounts for 77% of the total issuance with $2.7bn via six deals in 2018 YTD, followed by IPO with $695m via five deals.
Goldman Sachs leads the ECM league table with $5.7bn this YTD, China Securities Co Ltd made its way up to the second place with $4.7m, followed by Huatai Securities Co Ltd on $3.4bn.
| Pos. | Bookrunner | Deal Value ($m) | No. | %share |
|---|---|---|---|---|
| 1 | Goldman Sachs | 5,726.8 | 15 | 11.41 |
| 2 | China Securities Co Ltd | 4,671.9 | 11 | 9.31 |
| 3 | Huatai Securities Co Ltd | 3,404.5 | 12 | 6.79 |
| 4 | Citi | 3,060.5 | 18 | 6.1 |
| 5 | CITIC Securities | 2,356.1 | 10 | 4.7 |
Debt Capital Markets
Asian (ex-Japan) issuers raised $11.4bn via 11 deals this week by G3 DCM deals, on par with $11.3bn raised via 24 deals last week.
ChemChina issued the largest deal in the region on record this week, a 6-tranche bond (1st tranche is denominated in EUR) priced at $6.4bn via a consortium of 18 bookrunners. In addition, the first Japanese Yen denominated bond this year-to-date was issued by China Eastern Airlines Corp Ltd, who priced a 3-tranche bond at $471m (JPY50.0bn). The 1st tranche was priced via DBJ Capital Co Ltd and SMBC as bookrunners and the rest via a consortium of 6 bookrunners.
This week also saw an increase in volume on perpetual issuances. Tewoo Group No 5 Ltd priced $450m bond, China Minmetals Corp priced a $400m bond, and Dianjian International Finance Ltd priced a $300m bond this week. These bonds were all issued by Chinese corporates and denominated in US dollar.
HSBC leads Asia (ex-Japan) G3 DCM league table in 2018 YTD with $5.0bn, Bank of China took over the second seat with $4.0bn, followed by Citi with $3.9bn.
| Pos. | Bookrunner | Deal Value ($m) | No. | %share |
|---|---|---|---|---|
| 1 | HSBC | 4,974.7 | 43 | 6.96 |
| 2 | Bank of China | 4,009.5 | 33 | 5.61 |
| 3 | Citi | 3,880.3 | 28 | 5.43 |
| 4 | Standard Chartered Bank | 3,173.1 | 30 | 4.44 |
| 5 | JPMorgan | 2,901.6 | 15 | 4.06 |
